The Gap, Inc. (GAP)

Days of inventory on hand (DOH)

Feb 1, 2025 Nov 2, 2024 Aug 3, 2024 May 4, 2024 Feb 3, 2024 Oct 28, 2023 Jul 29, 2023 Apr 29, 2023 Jan 28, 2023 Oct 29, 2022 Jul 30, 2022 Apr 30, 2022 Jan 29, 2022 Oct 30, 2021 Jul 31, 2021 May 1, 2021 Jan 30, 2021 Oct 31, 2020 Aug 1, 2020 May 2, 2020
Inventory turnover 4.29 3.84 4.25 4.63 4.57 3.92 4.32 4.32 4.29 3.43 3.25 3.17 3.32 3.60 4.33 4.06 3.71 3.40 4.19 4.39
DOH days 85.16 95.08 85.78 78.79 79.90 93.22 84.41 84.44 85.01 106.39 112.27 115.06 109.79 101.48 84.28 89.95 98.36 107.36 87.02 83.19

February 1, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.29
= 85.16

The days of inventory on hand (DOH) for The Gap, Inc. have shown fluctuations over the specified time period. The DOH metric indicates how many days, on average, the company holds inventory before selling it.

From May 2, 2020, to August 1, 2020, DOH increased from 83.19 days to 87.02 days. This suggests potential inefficiencies in managing inventory levels.

A significant increase was seen between August 1, 2020, and October 31, 2020, with DOH rising to 107.36 days. This sudden spike may indicate either excess inventory or a decrease in sales.

Subsequently, from January 30, 2021, to April 30, 2022, The Gap managed to reduce its DOH gradually, suggesting improvements in inventory management efficiency.

However, the DOH increased again between July 30, 2022, and October 29, 2022, reaching a peak of 115.06 days on April 30, 2022. This prolonged holding of inventory may lead to increased carrying costs.

Between February 1, 2025, and August 3, 2024, DOH fluctuated within a range of 78.79 to 95.08 days. These variations demonstrate the ongoing efforts of The Gap to optimize inventory levels.

Overall, monitoring the DOH trend is crucial for The Gap, Inc. to ensure efficient inventory management, reduce carrying costs, and improve cash flow by minimizing excess inventory.